Vacancy Improves to 14-Year Low in 2015 Research & Forecast Report CHICAGO | INDUSTRIAL Fourth Quarter 2015 Craig Hurvitz Vice President | Chicago Market conditions improved significantly throughout 2015 in the Chicago-area industrial market. A five-year positive trend continued, highlighted by the lowest vacancy rates recorded in 14 years, net absorption totaling nearly 14.0 million square feet, several notable lease and sale transactions larger than 500,000 square feet, and the most construction activity the market has witnessed since 2008. Vacancy And Supply The Chicago-area industrial market ended 2015 with a 7.32 percent vacancy rate, 41 basis points below the rate recorded at the end of 2014. Accelerated user demand due to companies locating and expanding operations within the local market combined with curbed development activity has resulted in a vacancy rate below 8.0 percent for the past five consecutive quarters. Since peaking at 12.24 percent in early-2010, this rate has improved by 4.92 percent to levels last recorded in 2001 and well below those recorded during the active market of 2007. Despite nearly 3.4 million square feet of positive net absorption and consistent transaction velocity during the fourth quarter, the vacancy rate increased slightly by 6 basis points since September due to the completion of almost 3.6 million square feet of new speculative construction, 69 percent of which remains vacant. This newly-constructed space combined with vacated second- generation space resulted in 9.8 million square feet of new vacant space, bringing the total available supply in the market to 97.8 million square feet. Market Indicators CHICAGO METRO 2014 2015 VACANCY 7.73% 7.32% ABSORPTION 18,301,811 13,927,451 RENTAL RATE $4.41 $4.56
Transcript
Vacancy Improves to 14-Year Low in 2015
Research & Forecast Report
CHICAGO | INDUSTRIALFourth Quarter 2015
Craig Hurvitz Vice President | Chicago
Market conditions improved significantly throughout 2015 in the Chicago-area industrial market. A five-year positive trend continued, highlighted by the lowest vacancy rates recorded in 14 years, net absorption totaling nearly 14.0 million square feet, several notable lease and sale transactions larger than 500,000 square feet, and the most construction activity the market has witnessed since 2008.
Vacancy And Supply
The Chicago-area industrial market ended 2015 with a 7.32 percent vacancy rate, 41 basis points below the rate recorded at the end of 2014. Accelerated user demand due to companies locating and expanding operations within the local market combined with curbed development activity has resulted in a vacancy rate below 8.0 percent for the past five consecutive quarters. Since peaking at 12.24 percent in early-2010, this rate has improved by 4.92 percent to levels last recorded in 2001 and well below those recorded during the active market of 2007.
Despite nearly 3.4 million square feet of positive net absorption and consistent transaction velocity during the fourth quarter, the vacancy rate increased slightly by 6 basis points since September due to the completion of almost 3.6 million square feet of new speculative construction, 69 percent of which remains vacant. This newly-constructed space combined with vacated second-generation space resulted in 9.8 million square feet of new vacant space, bringing the total available supply in the market to 97.8 million square feet.
Market IndicatorsCHICAGO METRO 2014 2015
VACANCY 7.73% 7.32%
ABSORPTION 18,301,811 13,927,451
RENTAL RATE $4.41 $4.56
2 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
The vacancy rate improved most dramatically during 2015 in the I-290 South, North Suburbs, Southeastern Wisconsin and McHenry County markets, where the drop in vacancy exceeded 100 basis points. The I-55 Corridor and I-80/Joliet Corridor, two of the area’s most active markets, each witnessed vacancy rate increases of more than 200 basis points primarily due the completion of largely-vacant speculative construction projects.
Absorption
Net absorption, an indicator of demand for space in the market, totaled nearly 3.4 million square feet during the fourth quarter, bringing the total absorbed in 2015 to just shy of 14.0 million square feet. This figure is below the 18.3 million square feet absorbed in 2014, but is above the absorption tallies recorded in each year between 2008 and 2013.
The most active markets, including O’Hare, the I-55 Corridor, Southeastern Wisconsin and the I-80/Joliet Corridor, recorded the largest annual absorption totals, with more than 1.7 million square feet absorbed in each market during the course of 2015. Annual net absorption was most strongly negative in the I-290 North and I-290 South markets due to the completion of vacant speculative buildings and new vacancies being introduced to the market.
Leasing And Sale Activity
Total 2015 industrial leasing volume totaled 34.2 million square feet, a 9.37 percent decrease when compared to 2014’s total leasing volume of 37.7 million square feet. During the fourth quarter alone, leasing volume totaled nearly 8.0 million square feet.
The largest leases signed during 2015 included Mars Candy’s 1.4 million-square-foot build-to-suit transaction in Elwood’s CenterPoint Intermodal Center; Saddle Creek Logistics Services in a 1.1 million-square-foot build-to-suit in Joliet’s CenterPoint Intermodal Center; 3M Company signing a 987,000-square-foot build-to-suit in Park 88 in DeKalb; and Whirlpool taking occupancy of the 752,410-square-foot warehouse at 3851 Youngs Road in Joliet.
New big box lease transactions greater than 300,000 square feet increased to 19 in 2015 from 14 in 2014, indicative of tenants leasing larger space. The total volume of new big box leases increased by 25 percent to 10.7 million square feet, up from 8.5 million square feet leased in 2014.
2015 user sales volume totaled 13.9 million square feet, a significant decline compared to the 20.6 million square feet of user sales recorded in 2014. Four markets recorded more than 1.0 million square feet of user sale activity in 2015, including I-290 North, Southeastern Wisconsin, Chicago South, O’Hare and Lake County. The largest user sales completed in 2015 involved users purchasing recently completed build-to-suit facilities, including Niagara Bottling acquiring its 377,295-square-foot building in Pleasant Prairie and Ashley Furniture purchasing its 417,046-square-foot distribution facility in Romeoville.
Construction Activity
There are currently 54 development projects under construction in the Chicago-area industrial market totaling 15.2 million square feet. 28 of these projects are being built on a speculative basis representing 54 percent of the total activity. An additional 5.8 million square feet of build-to-suit projects and 1.3 million square feet of building additions are underway. Among the 8.2 million square feet of speculative development currently under construction, only 5.3 percent of the space has been pre-leased. The most activity is taking place in the I-80/Joliet Corridor market, where 3.5 million square feet of development is underway, followed by 3.0 million square feet in the Fox Valley, 2.1 million square feet in the I-55 Corridor, and 1.9 million square feet in Southeastern Wisconsin. The average building size among all of the ongoing construction activity is about 285,000 square feet.
Construction completions totaled 5.3 million square feet during the fourth quarter, of which 67 percent was built on a speculative basis. This added an additional 2.5 million square feet of vacant space to the market, as the completed speculative product was only 31.1 percent leased at the end of the quarter. The largest project completed during the fourth quarter was a two-building facility totaling 574,867 square feet in Wilmington’s RidgePort Logistics Center. Consolidated Distribution Corp. is leasing 286,867 square feet in building B while the 288,000-square-foot building A remains available.
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
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Historical Trends | Chicago MetroAbsorption and Vacancy
Lease and Sale Volume | Chicago Metro
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
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Central DuPage
Market IndicatorsCENTRAL DUPAGE 2014 2015
VACANCY 7.35% 6.15%
ABSORPTION 170,709 897,878
RENTAL RATE $5.21 $5.56 Lake Michigan
0 1 5 10 miles
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'Hare Expy.
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Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTYVacancy And Supply
The Central DuPage vacancy rate improved by 120 basis points during 2015, decreasing from 7.35 percent to end the year at 6.15 percent, one of the lowest vacancy rates the market has historically recorded. Elevated demand for space combined with limited land for new construction in this primarily infill market has resulted in one of the lowest vacancy rates among the 21 markets tracked.
The available industrial supply in the Central DuPage market decreased each quarter of 2015, with only 5.2 million square feet available at the end of the year compared to 6.2 million square feet at the end of 2014. This was largely due to significant net absorption during the second half of the year and few new sizeable vacancies being introduced to the market during the year.
Construction Activity
Only two development projects were completed in the Central DuPage market during 2015. Both projects were built on a speculative basis and both have subsequently been leased. During the fourth quarter, Panattoni Development Company completed construction on a 154,126-square-foot building at 501 S. Gary Avenue in Roselle. The building has been fully leased by office furniture provider Affordable Office Interiors. Panattoni also completed a 136,799-square-foot multi-tenant facility at 101 S. Gary Avenue in Roselle during the third quarter, which has been leased by Aquion and RBI Bearing, Inc.
Three construction projects are currently underway, including a 350,000-square-foot build-to-suit facility for logistics provider CoreCentric Solutions, Inc at 191 E. North Avenue in Carol Stream, a 186,800-square-foot speculative building being developed by Prologis at 601 Regency Drive in Glendale Heights’ High Grove Business Park. Finally, an 89,000-square-foot build-to-suit facility for machine component manufacturer LaVezzi Precision, Inc. is underway at 250 Madsen Drive in Bloomingdale.
4 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
Central DuPage leasing volume totaled more than 3.4 million square feet during 2015, the most activity witnessed since 2013, when the leasing volume totaled 4.0 million square feet. Five leases greater than 100,000 square feet were signed during 2015, the largest involving CoreCentric Solutions, Inc leasing its 350,000-square-foot build-to-suit facility that is now underway in Carol Stream. During the fourth quarter, medical products provider H.D. Smith Medical leased the 334,718-square-foot building located at 135-195 E Elk Trail in the Carol Stream Business Center.
User sale activity fell by 33.1 percent during 2015, totaling 988,194 square feet for the year, compared to nearly 1.5 million square feet in 2014. The largest user sale of the year involved NOW Foods purchasing the 205,259-square-foot building at 1620 Central Avenue in Roselle’s Turnberry Lakes Business Park. NOW Foods is currently renovating the building and plans to use it as a distribution center for its operations.
Absorption
The Central DuPage market recorded significant net absorption during 2015, totaling 897,878 square feet. This is more than four times the 170,709-square-foot net absorption total recorded in 2014, primarily due to tenants taking occupancy of recently leased space and few new vacancies being introduced to the market.
What to Expect in 2016
The ongoing improvement trend is expected to extend into 2016. Strong demand will persist, particularly for the market’s core product, with few options remaining. This is especially true in spaces 50,000 square feet or smaller. Although rental rates are predicted to continue to climb, even higher rates in the neighboring O’Hare market will fuel additional user consideration in the Central DuPage market. As spaces are leased, the vacancy rate will continue to decline due to few new construction opportunities.
Central DuPage | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
CoreCentric Solutions, Inc. 350,000 191 E North Avenue, Carol Stream Build-to-suit lease
HD Smith Medical 334,718 135-195 E. Elk Trail, Carol Stream New lease
M&R Printing, Inc. 319,885 440 Medinah Road, Roselle New lease
NOW Foods 205,259 1620 Central Avenue, Roselle User Sale
GELS Logistics, Inc. 154,275 430 Kimberly Drive, Carol Stream New lease
Affordable Office Interiors 154,126 501 S. Gary Avenue Roselle New lease
Aquion 91,049 101 Gary Avenue, Roselle New lease
Significant Lease and Sale Activity
Lease and Sale Volume | Central DuPage
Historical Trends | Central DuPageAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
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Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
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ions
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ChicagoVacancy And Supply
Both Chicago industrial markets experienced improved vacancy rates in 2015 compared to one year ago. The Chicago North vacancy rate of 5.23 percent was an improvement of 163 basis points year-over-year, while the Chicago South vacancy rate fell by 38 basis points to 10.02 percent.
Vacant supply in the Chicago North market decreased by 1.5 million square feet to end the year at 4.6 million square feet. This improvement was due to increased tenant demand. Available industrial supply in the Chicago South market improved as well, decreasing by 3.8 percent from the level reported one year ago to 8.4 million square feet at the end of 2015.
Construction Activity
Construction completions in the city of Chicago during 2015 consisted of three projects, all taking place in the Chicago South market. The largest was a 316,680-square-foot big-box speculative building constructed by Panattoni Development at 3348 S. Pulaski Road. Additionally, Method Products took occupancy of a 150,000-square-foot build-to-suit facility at 720 E. 11th Street, while Vienna Beef added 12,000 square feet to its new manufacturing facility at 1000 W. Pershing Road.
No developments were completed in the Chicago North market in 2015, however four buildings were demolished during the year, removing 167,503 square feet from the total inventory base. The Chicago South market experienced two demolitions totaling 622,144 square feet.
The only industrial construction project underway is a 37,000-square-foot build-to-suit facility for Amigo’s Foods at 5115 S. Millard Avenue expected to be completed in early-2016.
Market IndicatorsChicago North 2014 2015
VACANCY 6.86% 5.23%
ABSORPTION -449,188 715,342
RENTAL RATE $8.37 $8.50
Chicago South 2014 2015
VACANCY 10.40% 10.02%
ABSORPTION 359,395 -10,108
RENTAL RATE $4.33 $4.25
Lake Michigan
0 1 5 10 miles
NORTH
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'Hare Expy.
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Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
6 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
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-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Leasing And Sale Activity
Tenant demand increased in both Chicago markets during 2015. The Chicago North market leasing volume grew to 939,849 square feet, almost double the 491,000-square-foot tally from 2014. Leasing volume in the Chicago South market increased by 15.3 percent, reaching 1.95 million square feet by the end of the year.
Sale activity declined in both Chicago markets. Chicago South market volume totaled 1.3 million square feet, 20.4 percent below the 1.6 million square feet sold one year ago. Chicago North market sale activity totaled only 538,000 square feet, a significant decline from the 1.9 million square feet sales recorded in 2014.
Absorption
Net absorption was mixed in the city of Chicago during the course of 2015. Demand was positive in the Chicago North market, where net absorption totaled 715,342 square feet in 2015, an impressive improvement from the negative 449,188 square feet of net absorption recorded in 2014. Demand was flat in the Chicago South market, where negligible net absorption totaling negative 10,100 square feet was recorded in 2015.
What to Expect in 2016
Rental rates are expected to climb during 2016 for well-located, in-demand space in Chicago. Sale prices will also increase significantly due to a limited supply of quality product. Construction will remain limited to projects by well-funded developers due to the high cost of land and increasing construction costs.
Chicago | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Rightsize Facility Performance 225,000 4800-5000 W. Roosevelt Road, Chicago Lease expansion/renewal
LBP Packaging 180,437 1401 N. Cicero Avenue, Chicago New lease
Trunk Club 170,000 1333 N. Hickory Avenue, Chicago New lease
Joe Perillo 154,000 1414 S. Western Avenue, Chicago User Sale
Amazon.com 150,261 2801 S. Western Avenue, Chicago New lease
Method Products 150,000 720 E. 111th Street, Chicago User Sale
Lease and Sale Volume | Chicago
Historical Trends | ChicagoAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago South
Chicago North
Chicago South
Chicago North
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
Elgin/I-90 CorridorVacancy And Supply
The Elgin I-90 Corridor vacancy rate has improved by 4.0 percent over the past seven quarters and fell by 115 basis points to 10.6 percent during 2015. This is the lowest vacancy rate recorded in the market since the first quarter of 2013. Vacancy increased through much of 2013 and 2014 due to the delivery of several sizeable speculative construction projects and much of that new space has since been absorbed.
The available industrial supply decreased by 185,021 square feet during the course of 2015 to 3.3 million square feet. Significant leasing activity offset the effects of new vacancies being introduced to the market through speculative construction completions and tenants moving out.
Construction Activity
2015 was an active year for development in the Elgin I-90 Corridor. Six building were completed, the largest a 757,120-square-foot build-to-suit facility for Weber Grill manufacturer Weber-Stephen Products in Huntley. Three speculative projects were completed, including a 275,265-square-foot building in Gilbert’s Prairie Business Park, a 246,446-square-foot building in Elgin’s Randall Crossings Business Park, and a 82,922-square-foot facility at 401 Christina Drive in East Dundee. All three buildings have yet to be leased and remain 100 percent available.
Three additional projects are under construction, including a 133,000-square-foot build-to-suit facility for Renishaw Tool in West Dundee’s Oakview Business Park, an 83,640-square-foot speculative building in Elgin’s Randall Crossings Business Park, and a 35,000-square-foot build-to-suit project for Atlantic Transport on Davis Road in Elgin.
Market IndicatorsELGIN/I-90 CORRIDOR 2014 2015
VACANCY 11.75% 10.60%
ABSORPTION 753,238 1,642,348
RENTAL RATE $5.14 $5.02
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
8 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
When compared to the 2.3 million square feet leased in 2014, leasing volume was cut in half in 2015, totaling 1.0 million square feet. Several sizeable leases were signed however, the largest involved Motorola Solutions moving its training and manufacturing operations to 300,868 square feet at 2500-2580 Galvin Drive in Elgin’s Northwest Corporate Park.
User sale activity totaled 428,046 square for 2015, a figure slightly lower than the 447,400-square-foot user sale volume recorded in 2014. The largest user sale of the year involved hydraulic equipment manufacturer Bucher Hydraulics acquiring the 110,343-square-foot building at 2545-2555 Northwest Parkway in Elgin’s Northwest Corporate Park to expand its operations in the Chicago market.
Absorption
Total net absorption more than doubled in the Elgin I-90 Corridor during 2015, totaling 1.6 million square feet for the year. This represents the strongest annual net absorption recorded in the market since 2006.
What to Expect in 2016
Limited opportunities for modern warehouse space in the neighboring Northwest Suburbs market will continue to push larger tenant activity to the Elgin I-90 market in 2016. Demand for this high-quality new construction product is expected to further increase during the year, attracting additional users to the area. Further speculative development is expected to follow as recently-completed buildings are leased.
Elgin/I-90 Corridor | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Motorola Solutions 300,868 2500-2580 Galvin Drive, Elgin New lease
Box Partners 205,028 2501 Galvin Drive, Elgin New lease
NTN 150,550 305-325 Corporate Drive, Elgin New lease
Bucher Hydraulics 110,343 2545-2555 Northwest Parkway, Elgin User Sale
Great Lakes Technologies 56,049 2750 Alft Lane, Elgin New lease
Convenience Concepts, Inc. 50,056 2300-2370 Galvin Drive, Elgin New lease
Lease and Sale Volume | Elgin/I-90 Corridor
Historical Trends | Elgin/I-90 CorridorAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
Fox ValleyVacancy And Supply
The Fox Valley vacancy rate fluctuated during 2015, ending the year at 6.86 percent. While this rate is similar to the 6.83 percent rate recorded a year ago, it remains one of the lowest in Chicago’s industrial market and is one of the lowest rates the Fox Valley market has historically recorded.
The available industrial supply in the Fox Valley market increased throughout 2015 following a significant decrease during the first quarter of the year. The total reached 6.3 million square feet by the end of the year, slightly above the 6.2 million square feet recorded at the end of 2014. Speculative construction completions and new vacancies combined to increase the supply of available space in the market.
Construction Activity
Two speculative facilities were completed in the Fox Valley market during 2015. The largest was a 429,756-square-foot facility at 300 Mitchell Road in North Aurora’s Liberty Business Center. UTi Integrated Logistics leased 201,309 square feet in the building earlier in the year. During the fourth quarter, a 238,604-square-foot speculative facility was completed at 966 Corporate Boulevard in Aurora and remains 100 percent available.
Construction activity continues to increase in the Fox Valley market. There are currently nine projects underway totaling about 3.0 million square feet, including three speculative buildings and six build-to-suit facilities. The largest is a 499,140-square-foot build-to-suit project for record storage system, computer accessory, and paper shredder manufacturer Fellowes, Inc. in Aurora. The largest speculative project is a 452,153-square-foot building being developed by a joint venture between The Opus Group and USAA Real Estate Company in North Aurora’s Gateway Logistics Park.
Market IndicatorsFOX VALLEY 2014 2015
VACANCY 6.83% 6.86%
ABSORPTION 1,336,341 555,867
RENTAL RATE $4.40 $4.26Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
10 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
In 2015, the Fox Valley market experienced its largest annual leasing volume since 2011, totaling 3.1 million square feet. This represents a 40.8 percent increase over 2014’s total leasing volume of 2.2 million square feet. The largest lease signed in 2015 involved Woodridge-based third-party logistics provider Midwest Warehouse & Distribution System, Inc. signing a long-term lease for the 604,565-square-foot facility at 1200 Orchard Gateway in Aurora’s I-88 Gateway Logistics Center.
User sale activity totaled 387,113 square feet in 2015, a significant decrease from 2014’s user sale total of 1.4 million square feet. Wheel and tire distributor SD Wheel purchased the 105,147-square-foot building at 620 Stetson Avenue in St. Charles in July, moving its operations into the building from Carol Stream.
Absorption
Despite mixed quarters of positive and negative net absorption, total 2015 net absorption was positive for the Fox Valley, totaling 555,867 square feet. This represents a 58.4 percent decline from 2014’s total of 1.3 million square feet. User sales and tenants taking occupancy of recently leased space outpaced the effects of new vacancies and speculative construction completions.
What to Expect in 2016
With more than 1.2 million square feet of speculative development under construction and additional speculative projects expected to soon break ground, the vacancy rate may continue to fluctuate throughout 2016. However, user demand is expected to remain strongly positive, especially due to continued tightening in the nearby I-55 Corridor pushing users to the popular Fox Valley market.
Fox Valley | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Midwest Warehouse & Distribution System, Inc. 604,565 1200 Orchard Gateway Boulevard, North Aurora New lease
Fellowes, Inc. 499,140 1-2 Duke Parkway, Aurora Build-to-suit lease
Shorr Packaging Corporation 242,732 2 Duke Parkway, Aurora Build-to-suit lease
UTI Integrated Logistics 201,309 300 Mitchell Road, North Aurora Lease
Lease and Sale Volume | Fox Valley
Historical Trends | Fox ValleyAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
I-290 NorthVacancy And Supply
Vacancy in the I-290 North market measured 8.42 percent at the end of 2015, a 35-basis-point increase from the 8.07 percent rate recorded one year ago. Despite the slight increase, the current rate remains one of the lowest rates recorded in the market since 2008.
Available industrial supply in the I-290 North market measured 6.27 million square feet at the end of 2015, an increase of 145,818 square feet over the past year primarily due to new vacancies being introduced to the market. The largest increase in the I-290 North’s available supply was in the 100,000- to 200,000-square-foot range, increasing from only five options in 2014 to 13 options in 2015.
Construction Activity
There were no new developments completed in the I-290 North market in 2015. Two buildings are nearing completion on the site of the former Dominick’s distribution facility along I-294 in Northlake. The main building was previously demolished and a 588,233-square-foot building along with a 104,000-square-foot expansion to the existing freezer building are expected to be completed in early-2016. The site is being developed by Bridge Development Partners.
The I-290 North market has experienced a decrease in its inventory base over the past several years, and in 2015 seven buildings totaling 1,353,782 square feet were demolished. The I-290 North market’s inventory base now stands at 74.4 million square feet.
Market IndicatorsI-290 NORTH 2014 2015
VACANCY 8.07% 8.42%
ABSORPTION 1,521,890 -1,729,205
RENTAL RATE $4.21 $4.36
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
12 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
I-290 North leasing volume totaled 800,350 square feet in 2015, a 40.7 percent decline from 2014, when leasing activity totaled 1.3 million square feet. Demand was driven by small to mid-sized tenants during 2015. The largest new lease completed during the year involved for-profit thrift store company Savers, Inc. leasing 149,039 square feet at 4700-4950 W. Proviso Drive in Melrose Park.
User sale activity decreased as well, totaling 1.6 million square feet, 22 percent below 2014’s user sales volume total of 2.1 million square feet. Activity was strongest during the second quarter when 1.3 million square feet of user sales were completed. The largest user sale of 2015 involved Go To Logistics purchasing the 408,688-square-foot distribution building at 2233 West Street in River Grove from CenterPoint Properties.
Absorption
Net absorption turned sharply negative in the I-290 North market during 2015, totaling negative 1.7 million square feet. This was quite an adjustment from 2014, when net absorption was strongly positive, totaling 1.5 million square feet.
What to Expect in 2016
Few high-quality functional spaces remain available in the I-290 North market, suggesting that leasing activity will be more limited in 2016. As the average age of product in the market increases and Cook County taxes increase, sale prices are expected to decline over the next year.
I-290 North | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Go To Logistics 408,688 2233 West Street, River Grove User Sale
Edsal Sandusky Corporation 274,303 9428 Fullerton Avenue, Franklin Park User Sale
Savers, Inc. 149,039 4700-4950 W. Proviso Drive, Melrose Park New lease
FHC 77,116 2800 W. Lake Street, Melrose Park New lease
Mercury Plastics 68,663 11550 W. King Avenue, Franklin Park User Sale
Lease and Sale Volume | I-290 North
Historical Trends | I-290 NorthAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
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6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
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6%
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10%
12%
14%
-25.0
-20.0
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0.0
5.0
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20.0
25.0
2009 2010 2011 2012 2013 2014 2015
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ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
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60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
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2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
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3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
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2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
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8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
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2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
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3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
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2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
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15.0
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25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
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rbed (
Mill
ions)
0.0
10.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
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3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
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3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
I-290 SouthVacancy And Supply
The I-290 South vacancy rate increased by 249 basis points during 2015 to 9.24 percent, the highest vacancy rate the market has recorded since 2011. This increase is due to the completion of a speculative construction project that remains largely vacant combined with several sizeable new vacancies being introduced to the market due to tenant relocations.
The total available industrial supply also increased significantly during the course of the year, up 1.1 million square feet to 4.2 million square feet. This is the most available space the I-290 South market has recorded since 2011.
Construction Activity
Two new industrial buildings were delivered to the I-290 South market in 2015, both completed in McCook. The largest was a 226,196-square-foot speculative project developed by Bridge Development Partners, LLC at 8401 47th Street. The second project was a 41,802-square-foot building addition also completed by Bridge Development Partners, LLC at 4800 S. Vernon Avenue.
Despite these construction completions, the I-290 South inventory decreased by 394,600 square feet due to the demolition of two manufacturing buildings in the market.
The only project under construction in the market is a 283,124-square-foot speculative facility being developed by a joint venture between Cabot Properties and Seefried Properties at 7225 Santa Fe Drive in Hodgkins. The building is expected to be completed during the summer of 2016.
Market IndicatorsI-290 SOUTH 2014 2015
VACANCY 6.78% 9.27%
ABSORPTION 1,285,280 -1,217,835
RENTAL RATE $4.50 $4.82
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
14 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
2015 leasing volume totaled only 608,000 square feet, a 31.0 percent decline from the 2014 total of 882,215 square feet. This represents the lowest annual leasing volume since 2009 when 515,600 square feet of lease transactions were completed. The largest lease of the year involved Tytan Express leasing 139,333 square feet in the multi-building industrial complex at 6800 Santa Fe Drive in Hodgkins.
Only nine user sales totaling 326,000 square feet were completed in the I-290 South market in 2015. This is significantly lower than the 816,000 square feet sold in 2014, the lowest total posted in the past four years. In the largest sale of the year, dry freight carrier Real Trucking Inc. purchased three vacant buildings in Broadview including a 59,166-square-foot facility at 2001 W. Cermak Road which the company plans to demolish, as well as the 25,600-square-foot building at 2900 S. 21st Avenue and the 16,950-square-foot building at 2100 W. 21st Street.
Absorption
Net absorption fell sharply in the I-290 South market in 2015 to negative 1.2 million square feet for the year. The significant amount of vacant space added to the market resulted in this significant change from the 2014 net absorption total of positive 1.3 million square feet.
What to Expect in 2016
The negative trend witnessed in 2015 in the I-290 South market is expected to reverse in 2016, as demand is expected to increase. This is particularly true among the market’s more functional modern product, where options for spaces 125,000 square feet and larger are scarce. As spaces are leased, the vacancy rate will improve and net absorption will turn positive.
I-290 South | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
PaperSource, Inc. 150,316 7801 W. Industrial Drive, Forest Park New lease
Tytan Express 139,333 6800 Santa Fe Drive, Hodgkins New lease
Real Trucking Inc. 101,716 3-property portfolio, Broadview User Sale
Solo Laboriatories, Inc. 60,009 2120-2124 Roberts Drive Broadview User Sale
Nazdar Ink Technologies 38,460 5444 S. East Avenue, Countryside New lease
Lease and Sale Volume | I-290 South
Historical Trends | I-290 SouthAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
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4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
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rbed (
Mill
ions)
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2009 2010 2011 2012 2013 2014 2015
Mill
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Leased Sold
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-25.0
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2009 2010 2011 2012 2013 2014 2015
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ate
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rbed (
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ions)
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
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10%
-2.5
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
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6%
8%
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12%
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16%
-4.0
-3.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
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4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
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3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
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1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
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4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Abso
rbed (
Mill
ions)
0.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
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3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
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-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
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2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
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0.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Abso
rbed (
Mill
ions)
0.0
1.0
2.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
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12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
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Abso
rbed (
Mill
ions)
0.0
1.0
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3.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
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1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
Among the 21 industrial markets tracked, the I-55 Corridor vacancy rate improved the most in 2015, decreasing by an impressive 223 basis points to 8.63 percent by the end of the year. This is the lowest vacancy rate ever recorded in the I-55 Corridor market. Transaction velocity and user demand in the area has been unmatched over the past few years, and although speculative construction activity has dramatically increased, space continues to be leased at an impressive rate.
The available industrial supply in the I-55 Corridor decreased by more than 1.5 million square feet throughout the year, with only 6.9 million square feet available at the end of the year. While this figure can fluctuate dramatically when large speculative buildings are completed and subsequently leased, the trend remains positive.
Construction Activity
Construction completions totaled 10 in the I-55 Corridor during 2015, most of which were built on a speculative basis. The largest building completed was a 417,046-square-foot build-to-suit facility for furniture company Ashley Furniture at 1045 W. Crossroads Parkway in Romeoville. The largest speculative completion was a 329,912-square-foot building at 969 Veterans Parkway in Bolingbrook. The facility has since been fully leased to three tenants.
An additional nine projects are under construction totaling 1.6 million square feet and all are being building on a speculative basis. The largest project is a new four-building business park named Fountain Square Commerce Center being developed by Conor Commercial Real Estate at the corner of Remington Boulevard and Schmidt Road in Bolingbrook. The four buildings currently under construction will total 741,586 square feet when completed by next summer.
16 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
I-55 Corridor leasing activity totaled an impressive 6.1 million square feet in 2015, the highest annual tally since 2006. This represents a 29.4 percent increase over 2014’s leasing activity total of 4.7 million square feet. The largest new lease signed during the year involved logistics solutions provider PAE leasing the 723,291-square-foot distribution building at 1070 Windham Parkway in Romeoville’s Liberty Business Center.
The I-55 Corridor is typically known for investment sales activity, but some user sales took place in 2015 as well. User sale volume totaled 852,371 square feet for the year, a 39.4 percent decrease when compared to 2014’s user sales volume of 1.4 million square feet. The largest user sale completed in 2015 involved Ashley Furniture purchasing the 417,046-square-foot build-to-suit facility recently completed by developer Ryan Companies for the furniture company.
Absorption
Net absorption in the I-55 Corridor more than doubled in 2015, totaling 3.8 million square feet for the year. Total net absorption in 2014 was 1.7 million square feet, while 2013 recorded only 275,617 square feet. This dramatic increase is due to tenants taking occupancy of large space recently leased, few new sizeable vacancies being introduced to the market, and limited vacant speculative construction completions.
What to Expect in 2016
The amount of ongoing speculative development will likely limit how far the vacancy rate will be able to fall in 2016 due to new vacant spaces being completed. The market will also witness some of the final remaining vacant land parcels being placed into production if the proposed speculative projects receive municipal approval. Owners of Class B product in the I-55 Corridor will need to budget refurbishment of their buildings to compete with the ongoing new construction activity expected to deliver in 2016.
I-55 Corridor | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
PAE 723,291 1070 Windham Parkway, Romeoville New lease
Ozburn-Hessey Logistics 672,080 790 Taylor Road, Romeoville New lease
The Central American Group 490,420 815 Bluff Road, Romeoville New lease
Ashley Furniture 417,046 1045 Crossroads Parkway, Romeoville Build-to-suit sale
Swap.com 361,176 850 S. Veterans Parkway, Bolingbrook New lease
Jacobson/XPO 352,338 150 E. Crossroads Parkway, Bolingbrook New lease
Lease and Sale Volume | I-55 Corridor
Historical Trends | I-55 CorridorAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Feet
Abso
rbed (
Mill
ions)
0.0
1.0
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3.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
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4%
6%
8%
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14%
-25.0
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2009 2010 2011 2012 2013 2014 2015
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ate
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rbed (
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ions)
0.0
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2009 2010 2011 2012 2013 2014 2015
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ions
Leased Sold
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6%
8%
10%
-2.5
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1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Abso
rbed (
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ions)
0.0
0.5
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
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0.0
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3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
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2%
4%
6%
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-0.5
0.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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rbed (
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ions)
0.0
0.5
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
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4%
6%
8%
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14%
16%
-3.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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ions)
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2009 2010 2011 2012 2013 2014 2015
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ions
Leased Sold
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6%
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14%
-2.5
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0.0
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2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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rbed (
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ions)
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
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-1.5
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2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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rbed (
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
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18%
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2009 2010 2011 2012 2013 2014 2015
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ate
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2009 2010 2011 2012 2013 2014 2015
Mill
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Leased Sold
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0.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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rbed (
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ions)
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
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6%
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16%
-2.0
-1.5
-1.0
-0.5
0.0
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2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Abso
rbed (
Mill
ions)
0.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
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12%
-3.0
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0.0
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1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Feet
Abso
rbed (
Mill
ions)
0.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
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1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
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4%
6%
8%
10%
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14%
-4.0
-3.0
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2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
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Abso
rbed (
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ions)
0.0
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2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
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12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
The vacancy rate in the I-80/Joliet Corridor market experienced a significant adjustment during the course of 2015, improving by 212 basis points to 7.15 percent by the end of the year. This was one of the largest decreases witnessed in 2015 among the 21 industrial markets tracked. This adjustment was due to significant leasing activity combined with the completion of several sizeable build-to-suit projects throughout the year.
The available industrial supply in the I-80/Joliet corridor market decreased by more than 1.3 million square feet over the past twelve months, with 5.5 million square feet available at the end of 2015. Several large leases were signed, and the majority of the new construction projects completed were fully-leased build-to-suit projects.
Construction Activity
Six construction projects were completed during 2015 in the I-80/Joliet Corridor, the largest being a 1.7-million-square-foot facility for tire manufacturer Michelin in Wilmington’s RidgePort Logistics Center consisting of two buildings. The largest speculative project completed was a 574,867-square-foot building also located in the RidgePort Logistics Center. Consolidated Distribution Corp. leased 288,000 square feet in the building prior to its completion.
An additional six development projects are underway in the market, the largest of which is a 1.1-million-square-foot build-to-suit facility for Saddle Creek Logistics in Joliet’s CenterPoint Intermodal Center. Nearby, CenterPoint Properties is preparing the land site to develop a 1.4-million-square-foot build-to-suit facility for Mars Candy.
18 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
Leasing volume eclipsed 4.3 million square feet during 2015. While this is an 11.4 percent decrease from the 4.9 million square feet leased in 2014, it is still one of the strongest years for leasing in the I-80/Joliet Corridor in history. Ten leases larger than 100,000 square feet were signed during 2015, the largest being Mars Candy’s build-to-suit lease in Elwood’s CenterPoint Intermodal Center.
User sale activity totaled only 210,192 square feet in 2015, a significant decrease from the 768,383-square-foot user sale total in 2014 and the 1.7-million-square-foot total in 2013. While investment sale activity continues to increase in the market, user sales have been few due to the area’s product catering primarily to investment buyers.
Absorption
In 2015, the I-80/Joliet Corridor market experienced its strongest year of net absorption in history, totaling 4.2 million square feet. This represents a 55 percent increase from 2014’s tally of 2.7 million square feet. This significant absorption was due to recent elevated leasing activity and the completion of several sizeable build-to-suit projects.
What to Expect in 2016
The I-80/Joliet Corridor vacancy rate is expected to continue to decline in 2016 as tenants take occupancy of significant spaces recently leased and a few major transactions currently in play are completed. Developers will remain active for quality 20- to 50-acre tracts, but will continue to shy away from larger bulk parcels. Several large construction projects are currently planned for the market and are expected to begin construction in 2016.
I-80/Joliet Corridor | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Mars Candy 1,388,000 4005 Cedar Creek Drive, Elwood Build-to-suit lease
Whirlpool Corporation 752,410 3851 Youngs Road, Joliet New lease
Amazon.com 475,104 401 Laraway Road, Joliet New lease
International Transload Logistics, Inc. 303,063 3801 CenterPoint Way, Joliet New lease
Consolidated Distribution Corporation 286,867 29700 S Graaskamp Boulevard, Wilmington Build-to-suit lease
W.W. Grainger, Inc. 230,540 3501 Corporate Drive, Joliet New lease
Lease and Sale Volume | I-80/Joliet Corridor
Historical Trends | I-80/Joliet CorridorAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
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3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
Lake CountyMarket IndicatorsLAKE COUNTY 2014 2015
VACANCY 10.00% 10.33%
ABSORPTION -72,140 568,915
RENTAL RATE $5.19 $5.39
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
Vacancy And Supply
The Lake County vacancy rate increased by 33 basis points during 2015 to end the year at 10.33 percent. Following a slight dip during the first quarter, vacancy was on the rise in every other quarter of the year, and is now one of the highest rates among the 21 industrial markets tracked.
The total available industrial supply increased throughout 2015 as speculative construction projects were completed and new vacancies were introduced to the market. At the end of the year, 7.4 million square feet were available in the Lake County industrial market, a 5.2 percent increase over a year ago.
Construction Activity
Five construction projects were completed in Lake County during 2015. The largest was a 454,276-square-foot speculative facility at 1243 Gregory Drive in Antioch. The building has been partially leased by large-format printer GFX International and Actavis, a specialty pharmaceutical company. Two additional speculative facilities known as Bridgepoint 94 Corporate Park were completed in Libertyville, totaling 406,212 square feet.
Two construction projects are underway, including a 626,848-square-foot speculative development being developed by a joint-venture between Bridge Development Partners, Hunt Realty, Wanxiang, and Globe Corporation at 1750 Bridge Drive in Waukegan’s Bridge Point North Business Park. A 20,000-square-foot build-to-suit facility for Bimbo Bakeries is underway at 845 Telser Road in the Lake Zurich Corporate Park.
20 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
Leasing activity totaled 2.0 million square feet in the Lake County industrial market in 2015, a 13.3 percent decrease from last year’s 2.3 million square feet leasing activity total, but 12.7 percent higher than 2013’s total. The largest lease of the year involved pharmaceutical company Actavis taking 213,746 square feet in the recently completed speculative building at 1243 Gregory Drive in Antioch’s ACC Logistics Center.
User sale activity increased by 54.7 percent year-over-year, totaling just over 1.0 million square feet by the end of the year. The largest user sale of 2015 involved acrylic bath and shower liner manufacturer BCI Acrylic purchasing the 254,386-square-foot vacant building at 1800 Industrial Drive in Libertyville from Trammell Crow Company.
Absorption
Despite an increasing vacancy rate, net absorption was positive for 2015 in the Lake County market, totaling 568,915 square feet for the year. The completion of partially-vacant speculative facilities pushed the vacancy rate higher, while tenants taking occupancy of recently leased space and the completion of build-to-suit construction projects resulted in positive net absorption.
What to Expect in 2016
Additional construction projects are planned for Lake County in 2016, which suggests the vacancy rate will remain elevated around 10 percent despite strong leasing activity. The completion of large speculative projects like 1750 Bridge Drive will introduce sizeable new vacancies to the market. Lake County users will continue to experience migration pressure from Southeast Wisconsin, while others will decide to stay put.
Lake County | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
BCI Acrylic 254,386 1800 Industrial Drive, Libertyville User Sale
Actavis 213,746 1243 Gregory Drive, Antioch New lease
ThredUP, Inc. 143,375 100-140 Lakeview Parkway, Vernon Hills Sublease
GFX International 108,575 1243 Gregory Drive, Antioch New lease
Banner Plumbing Supply 101,880 1020 E. Lake Cook Road, Buffalo Grove New lease
Lease and Sale Volume | Lake County
Historical Trends | Lake CountyAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
North SuburbsMarket IndicatorsNORTH SUBURBS 2014 2015
VACANCY 5.36% 6.41%
ABSORPTION -202,347 -531,566
RENTAL RATE $5.18 $4.71
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
Vacancy And Supply
The vacancy rate in the North Suburbs market increased by 105 basis points during 2015 despite continued strong leasing and user sale activity. This increase was due to several new vacancies being introduced to the market during the year. At the end of the year, the vacancy rate in the North Suburbs stood at 6.41 percent, the highest rate in two years.
Total available supply increased as well, reaching 3.6 million square feet at the end of the year, a 20.9 percent increase over the 3.0 million square feet available at the end of 2014.
Construction Activity
One build-to-suit construction project was completed in 2015. Fedex Ground Packaging moved into its 306,448-square-foot warehouse facility at 5959 W. Howard Street in Niles.
One project is currently under construction in the market, a 217,280-square-foot speculative facility being developed by Seefried Industrial Properties, Inc. at 5600-5750 W Jarvis Avenue in Niles. The building has been partially leased by Thermal Care, Inc. and currently offers 81,837 square feet of available space.
22 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
Leasing volume in the North Suburbs market totaled 917,536 square feet in 2015, a total only slightly below 2014’s volume of 1.0 million square feet. The largest new lease signed during the year involved cooling equipment and system manufacturer Thermal Care Inc., leasing 135,000 square feet in the speculative facility currently under construction at 5600-5750 W. Jarvis Avenue in Niles.
User sales volume totaled 589,960 square feet, a significant decline from the 1.2 million square feet of user sales recorded in 2014. The largest sale involved highway and street construction company Orange Crush, LLC purchasing the 83,787-square-foot building at 571 S. Wheeling Road in Wheeling. The buyer plans to demolish the existing building to build a new facility for its business operations.
Absorption
Total net absorption in the North Suburbs market was negative for the third consecutive year, totaling negative 531,566 square feet for the year. This negative total was due to leasing activity being offset by new vacancies being introduced.
What to Expect in 2016
The North Suburbs vacancy rate is expected to remain relatively steady into 2016. Tenants will continue to be driven to modern distribution space, which aside from recent construction projects is rare in the North Suburbs market. Rental rates and sale prices will continue to gradually increase, as the significant activity throughout Chicago’s industrial market translates to the North Suburbs. Construction activity is expected to remain limited to redevelopment projects due to the area’s status as an infill market.
North Suburbs | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Thermal Care, Inc. 135,227 5600-5750 W. Jarvis Street, Niles New lease
Orange Crush, LLC 83,787 571 S. Wheeling Road, Wheeling User Sale
Swiss Precision Machining Inc. 82,450 634 S. Glenn Avenue, Wheeling User Sale
Quantum Color Graphics 81,804 6410-6430 W. Howard Street, Niles New lease
US Auto 68,203 7711 Gross Point Road, Skokie New lease
Lease and Sale Volume | North Suburbs
Historical Trends | North SuburbsAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
Northwest SuburbsVacancy And Supply
The vacancy rate in the Northwest Suburbs market increased by 51 basis points to 8.95 percent during 2015, the highest rate the market has recorded since mid-2013.
Similarly, the available industrial supply increased throughout 2015, reaching 3.1 million square feet at the end of the year, an 8.2 percent increase from the 2.9 million square feet recorded during 2014.
Construction Activity
Two new big-box development projects totaling 725,672 square feet were completed in the Northwest Suburbs in 2015. The largest was a speculative project developed by The Opus Group at 10 N. Falcon Court in Streamwood totaling 423,672 square feet. The second project was a 302,000-square-foot build-to-suit facility completed during the second quarter for Sunstar Americas at 1995 N. Roselle Road in Schaumburg.
Two new projects are under construction in the Northwest Suburbs at the Brewster Creek Business Park in Bartlett. Triumph Construction is developing a 50,000-square-foot warehouse facility for Ace Relocation Systems and Greco & Sons has started construction on a 64,192-square-foot speculative building at 1580 Hecht Court.
Market IndicatorsNORTHWEST SUBURBS 2014 2015
VACANCY 8.44% 8.95%
ABSORPTION -466,869 409,692
RENTAL RATE $5.13 $5.22
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
24 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
Leasing volume in the Northwest Suburbs totaled 376,063 square feet in 2015, a significant decrease from 2014’s total of 747,415 square feet. This is because leasing activity was primarily concentrated in smaller spaces between 10,000 and 20,000 square feet in 2015. The largest new lease signed involved motor vehicle brake system manufacturer Bremskerl North America, Inc. expanding its operations by leasing the 50,080-square-foot facility at 1291 Humbracht Circle in Bartlett’s Brewster Creek Business Park.
2015 user sale activity increased largely due to Japanese company Sunstar Americas Inc. purchasing the the 302,000-square-foot build-to-suit project built for the company by Peak Construction Corp. in Schaumburg. User sales volume totaled 597,679 square feet, more than double 2014’s volume of 274,428 square feet.
Absorption
Despite an increasing vacancy rate due to the completion of the 423,672-square-foot speculative project in Streamwood, net absorption was positive during 2015 in the Northwest Suburbs, totaling 409,692 square feet. This represents a significant improvement over the 2014 net absorption total of negative 466,869 square feet.
What to Expect in 2016
The vacancy rate in the Northwest Suburbs market is expected to remain relatively stable throughout 2016 and may improve if a large user leases some of the new speculative product in the market. Leasing activity is expected to remain elevated, particularly for spaces between 20,000 and 50,000 square feet.
Northwest Suburbs | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Sunstar Americas, Inc. 302,000 1995 N. Roselle Road, Schaumburg Build-to-suit sale
Tru Grind, Inc. 52,343 3803-3815 N. Ventura Drive, Arlington Heights User Sale
Bremskerl North America, Inc. 50,080 1291 Humbracht Circle, Bartlett New lease
Rana Foods 46,047 1544-1546 Hecht Drive, Bartlett New lease
E3 Diagnostics 30,777 3311-3333 N. Kennicott Avenue, Arlington Heights New lease
Lease and Sale Volume | Northwest Suburbs
Historical Trends | Northwest SuburbsAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
O’HareMarket IndicatorsO’HARE 2014 2015
VACANCY 5.98% 5.20%
ABSORPTION 3,253,708 1,049,941
RENTAL RATE $5.14 $5.25
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
Vacancy And Supply
The O’Hare vacancy rate improved throughout 2015, decreasing 78 basis points over the course of the year to 5.20 percent, the lowest rate recorded in the O’Hare market since 2001. This rate is 318 basis points below the vacancy rate recorded at the end of 2013, a significant improvement in only two years. It is also the second lowest vacancy rate among the 21 industrial markets tracked, right behind the 5.19 percent vacancy rate in Northwest Indiana.
The available industrial supply in the O’Hare market decreased by nearly 1.1 million square feet during 2015 to 7.3 million square feet. This is the smallest amount of space available since 2000. This is due to the absorption of more than 7.0 million square feet over the past five years combined with limited new speculative construction due to the area’s status as an infill market.
Construction Activity
Four construction projects were completed during 2015, the largest being a 235,781-square-foot speculative facility that was developed by Liberty Property Trust at 333 Howard Avenue in Des Plaines. The entire building was leased by global logistics provider C.H. Robinson during the fourth quarter.
There are no ongoing construction projects in the O’Hare market, but a 120,000-square-foot speculative building is expected to begin construction during the first quarter of 2016. The project is being developed by Hamilton Partners and is located at 1349 W Irving Park Road in Itasca.
26 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
Leasing activity totaled 3.9 million square in the O’Hare market during 2015, a 32.4 percent decrease when compared to 2014’s total of 5.8 million square feet. Despite this decrease, the O’Hare market still managed to record the third-highest 2015 leasing total among the 21 industrial markets tracked. The largest new lease of the year involved TopLine Furniture taking the entire 310,916-square-foot building located at 1321-1375 W. Thorndale Avenue in Itasca.
User sales volume picked up in 2015, increasing by 21.3 percent to 1.2 million square feet. The largest user sale of the year involved forklift, lift truck, and pallet truck distributor Atlas Toyota materials Handling, LLC buying the 169,000-square-foot industrial building at 1850 Touhy Avenue in Elk Grove Village.
Absorption
Net absorption totaled nearly 1.1 million square feet in 2015, a figure well below the 3.3-million-square-foot net absorption total for 2014. This change was largely due to the completion of fewer construction projects and less substantial leases being completed due to few available spaces remaining in the market.
What to Expect in 2016
There remains a shortage of available modern buildings available in the O’Hare market, and all of the recently completed speculative buildings have been leased. Due to few options for Class A space in the O’Hare market, functional second generation buildings are expected to see additional interest and activity in 2016. Investors continue to be hungry for stable O’Hare assets which is expected to continue to drive down cap rates.
O’Hare | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
TopLine Furniture 310,916 1321-1375 W. Thorndale Avenue, Itasca New lease
CH Robinson 235,781 333 Howard Avenue, Des Plaines New lease
Atlas Toyota Material Handling, LLC 169,000 1850 Touhy Avenue, Elk Grove Village User Sale
Batavia Container, Inc. 126,722 1100 Kirk Street, Elk Grove Village New lease
Carretera Construction 121,127 1600 Busse Road, Elk Grove Village User Sale
NNR Global Logistics USA, LLC 119,752 2201 Lunt Avenue, Elk Grove Village New lease
Trimaco 118,388 1221 Landmeier Road, Elk Grove Village User Sale
McNichols Company 112,862 2200-2220 Arthur Avenue, Elk Grove Village New lease
Lease and Sale Volume | O’Hare
Historical Trends | O’HareAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
South SuburbsVacancy And Supply
The vacancy rate in the South Suburbs market improved by 29 basis points during 2015, reaching 7.57 percent at the end of the fourth quarter. Following several years of the vacancy rate hovering in the double digits, the rate has returned to levels last witnessed in 2002.
In line with the drop in vacancy, available industrial supply in the South Suburbs decreased as well, with 7.7 million square feet available at the end of the year, a 3.3 percent drop from the 8.0 million square feet available at the end of 2014. This figure has improved due to continued leasing and user sale activity.
Construction Activity
Three build-to-suit projects totaling 255,000 square feet were completed in the South Suburbs in 2015. During the first quarter of the year, Becknell Industrial completed a 45,000-square-foot facility for Bimbo Bakery at 13005 S. Hamlin Court in Alsip. Ed Miniat, Inc. completed a 60,000-square-foot building addition at 16250 S. Vincennes Avenue in South Holland and Professional Freezing Services took possession of a 150,000-square-foot facility at 7035 W. 65th Street in Bedford Park, both completed in the fourth quarter of 2015.
There are no new construction projects currently underway in the South Suburbs market.
Market IndicatorsSOUTH SUBURBS 2014 2015
VACANCY 7.86% 7.57%
ABSORPTION 1,967,585 283,772
RENTAL RATE $3.73 $3.82
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
28 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
2015 leasing volume totaled 1.5 million square feet, only a slight decrease from 2014’s leasing volume of 1.6 million square feet. Tenant demand was driven by mid-sized tenants in 2015. Significant transactions included First Logistics’ 164,669-square-foot sublease at 11859 S. Central Avenue in Alsip and WSI Integrated Logistics’ 156,000-square-foot lease at 21700 Mark Collins Drive in Sauk Village.
User sales volume decreased in 2015, totaling 742,846 square feet for the year. This represents a 55.6 percent decline when compared to 2014’s 1.7-million-square-foot volume. The largest user sale of 2015 involved Combined Warehouse, Inc. purchasing the 192,384-square-foot building located at 7401 S. 78th Avenue in Bridgeview at auction.
Absorption
Net absorption was positive in 2015 in the South Suburbs market, totaling 283,772 square feet, down from the impressive 1.2 million square feet registered in 2014. While three of the four quarters of the year reported negative figures, net absorption was strongly positive during the second quarter, enough to push the year-end tally positive.
What to Expect in 2016
Continued robust leasing activity is expected to result in improving conditions in 2016. As tenants take occupancy of recently leased space, the vacancy rate will decline due to the positive absorption of vacant space. Investor activity is expected to pick up in the South Suburbs as well, as buyers look at the market’s product as an opportunity in a tightening market. Although nothing is currently planned, speculative construction activity in the South Suburbs market is likely not far off.
South Suburbs | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Combined Warehouse, Inc. 192,384 7401 S. 78th Avenue, Bridgeview User Sale
First Logistics 164,669 11859 S. Central Avenue, Alsip Sublease
WSI Integrated Logistics 156,000 21700 Mark Collins Drive, Sauk Village New lease
Warehouse Specialists, Inc. 104,000 21700 Mark Collins Drive, Sauk Village New lease
R.M. Lucas Co. 91,839 12400 S. Laramie Avenue, Alsip User Sale
Lease and Sale Volume | South Suburbs
Historical Trends | South SuburbsAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
Southeast WisconsinVacancy And Supply
The Southeast Wisconsin vacancy rate increased by 102 basis points to 4.55 percent during the fourth quarter of 2015 due to the completion of two vacant speculative construction projects. Over the course of the year, the vacancy rate increased by 109 basis points from 3.46 percent at the end of 2014.
The new space introduced to the market through speculative construction completion resulted in an increase in the available industrial supply as well. Total available space increased by 39.7 percent to 2.4 million square feet.
Construction Activity
The Southeast Wisconsin market witnessed the completion of seven construction projects in 2015 totaling more than 3.3 million square feet. The largest project completed was a 1.1-million-square-foot distribution facility for online giant Amazon.com in Kenosha, which was part of a 2-building, 1.6-million-square-foot campus for the company.
Four development projects are currently under construction in Southeast Wisconsin and several additional projects are expected to begin construction in the spring. The largest speculative building underway is a 600,539-square-foot facility being developed by First Industrial Realty Trust at First Park 94 in Somers.
Market IndicatorsSOUTHEAST WISCONSIN 2014 2015
VACANCY 3.46% 4.55%
ABSORPTION 2,018,320 2,276,143
RENTAL RATE $3.53 $4.14
Lake Michigan
0 1 5 10 miles
NORTH
94
94
94
94
94
9457
294
80
80
55
55
55
355
294
290
290
290
88
88
355
294
90
90
90
90
90
190
41
94
165
31
50
142
32
Elgin-O
'Hare Expy.
East-West Tollway
45
45
41
41
45
12 20
45
34
34
12
12
14
83 60
8322
68
7262
21
5953
58
20
3120
64 53
64
83
59
43
504353
53
171
7 50
Lake Cook Rd.
45
CHICAGONORTH
CHICAGO SOUTH
O'HARE
NORTHSUBURBS/COOK
LAKE COUNTY
CENTRALDuPAGE
NORTHWESTSUBURBS
I-290 NORTH
I-290 SOUTH
SOUTH SUBURBS
ELGIN I-90
I-88 / FOX VALLEY
I-55 CORRIDOR
FAR SOUTH SUBURBS
NORTH-WEST INDIANA
SOUTHEAST WISCONSIN
I-80 / JOLIET CORRIDOR
DeKALB COUNTY
McHENRY COUNTY
30 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Leasing And Sale Activity
Southeast Wisconsin leasing activity dropped off dramatically in 2015, totaling only 106,782 square feet, an 89.9 percent drop from 2014’s total leasing volume of 1.1 million square feet. Although few significant leases were signed, this is a not cause for concern for the market, as the area is subject to periods of few sizeable leases followed by two or three large leases the subsequent quarter. The largest new lease signed in 2015 involved packaging solutions provider Parker Plastics expanding its lease by 50,000 square feet to occupy 125,567 square feet at 8201 109th Street in Pleasant Prairie’s LakeView Corporate Park East.
Several user sales were completed in 2015 totaling 1.4 million square feet, a 79.0 percent increase in user sales activity when compared to 2014. The largest user sale involved Midwest Refrigerated Services buying its 411,415-square-foot build-to-suit facility from developer CenterPoint Properties.
Absorption
Despite limited leasing activity in 2015, total net absorption managed to increase by 12.8 percent to 2.3 million square feet. This significant absorption was due to the completion of several build-to-suit projects, tenants taking occupancy of recently leased space and sizeable user sale transactions.
What to Expect in 2016
The vacancy rate is expected to rise during 2016 as under construction and planned speculative construction projects are completed. However, leasing activity is expected to pick up, as there are currently two pending leases greater than 400,000 square feet each. Wisconsin’s attractive incentives and pro-business environment is expected to continue to draw companies across the border from Illinois.
Southeast Wisconsin | Top 2015 TransactionsTENANT/BUYER SIZE (SF) ADDRESS TYPE
Midwest Refrigerated Services 411,415 11681 88th Avenue, Pleasant Prairie User Sale
Niagara Bottling, LLC 377,295 11031 88th Avenue, Pleasant Prairie Build-to-suit sale
Kenall Manufacturing 354,000 10200 55th Street, Kenosha Build-to-suit sale
Parker Plastics 125,569 8201 109th Street Pleasant Prairie Lease expansion/renewal
Gourmet Foods International 35,216 9629 58th Place, Kenosha User Sale
Lease and Sale Volume | Southeast Wisconsin
Historical Trends | Southeast WisconsinAbsorption and Vacancy
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Chicago Metro Elgin I 55 Northwest Suburbs
Central DuPage Fox Valley I 80 O'Hare
Chicago North I 290 North Lake County South Suburbs
Chicago South I 290 South North Suburbs Southeast Wisconsin
0%
2%
4%
6%
8%
10%
12%
14%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
16%
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015M
illio
ns
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
0%
2%
4%
6%
8%
10%
12%
14%
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015
Vacancy R
ate
Square
Feet
Abso
rbed (
Mill
ions)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2009 2010 2011 2012 2013 2014 2015
Mill
ions
Leased Sold
Significant Lease and Sale Activity
31 Research & Forecast Report | Fourth Quarter 2015 | Chicago / Industrial | Colliers International
Fourth Quarter 2015 Industrial Market Statistics
SUB-MARKET TOTAL INVENTORY SQ. FT NEW SUPPLY CAME ON MARKET
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
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